Good result and continued improvements

Today we published our financial results for the third quarter. I am pleased to say that we are continuing to see clear performance improvements. We have retaken lost ground in business, improved customer experience and increased efficiency. 

This year we have witnessed how individuals, businesses and societies have adapted to new ways of living due to the COVID-19 pandemic. We have seen a gradual recovery, but have also faced some setbacks.

For us at Nordea, the COVID-19 pandemic has somewhat dominated our  first year with our updated business plan and new financial targets. Thanks to our dedicated employees, strong balance sheet and high quality digital services, we have been able to support our customers and the societies around us, and will continue to do so. We have launched new products and services and increased our business volumes, particularly in mortgages and savings.

Despite the COVID-19 pandemic, we have continuously moved in the right direction towards our targets. Our customer satisfaction levels are now higher than before the outbreak and our assessment is that we are growing faster than the market in several areas. The strong results for the third quarter reflect this development. 

In the third quarter operating profit increased by 24% compared with the same quarter last year, with income increasing by 4% and costs declining by 6%.

We have lowered our cost-to-income ratio to 52% from 58% within a year. This shows we have taken a decisive step towards our cost-to-income target of 50% in 2022.

Return on equity was 10.1%, supported by very low net loan losses in the third quarter. We have a strong capital position and strong credit quality, and are one of the best capitalised banks in Europe. Our strong financial position means that we are well positioned to both support our customers and pay out dividends. 

Throughout the COVID-19 pandemic, we have proved the resilience of our business model and the progress we make every day confirms that our plan is the right one. 

We remain committed to delivering on our financial targets and meeting our key priorities: to optimise operational efficiency, drive income growth initiatives and create great customer experiences. 

In doing so, we will continue to fulfil our responsibility towards our customers, employees and shareholders. This benefits both society and our business.